ar 007: economics Sample Multiple-Choice concerns

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Subarea I1—ECONOMIC CONCEPTS and SYSTEMS objective 001Understand financial terms, concepts, and also systems.

1. I m sorry of the following is the finest example the marginal analysis?

compare the costs and also benefits of a proposed investment estimating potential sales because that a brand-new product identify the fixed prices for a brand-new production facility forecasting likely changes in significant economic trends AnswerEnter to expand or fallen answer.Answer broadened Correct Response: A.

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2. Use the complying with scenario to answer the question that follows.

Two separately owned drug carriers arrange to merge their businesses to kind a solitary firm. Prior to they deserve to do so, however, the merger have to be authorized by a government company to ensure that it does no violate antitrust laws.

This scenario most likely took location in i m sorry of the following types of economic systems?

pure market economic system command financial system timeless economic mechanism mixed-market economic system AnswerEnter to expand or fallen answer.Answer broadened Correct Response: D.

3. I beg your pardon of the complying with concepts finest explains the thinking behind the core economic principle the voluntary profession creates wealth?

economic climates of range specialization marginal efficiency of capital capital mobility AnswerEnter to increase or collapse answer.Answer broadened Correct Response: B.

Use the one flowchart listed below to prize the two questions that follow.

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Circular flow chart reflecting roles in the U S economy. In the Product industry the service Firms administer Goods and also Services come Households and Households provide the payments for goods and also services to organization Firms. In the element market company Firms carry out rent wages and also interest come Households and Households carry out land labor and also capital to business firms.

objective 002Understand the market economy.

4. The info in the circular flowchart ideal illustrates i beg your pardon of the following attributes of the U.S. Economy?

the impact of incentives top top economic task the procedure of mixed markets the affect of scarcity on economic decisions the voluntary exchange the goods and services AnswerEnter to broaden or please answer.Answer increased Correct Response: D.

5. Government purchases that airplanes would certainly initially impact which that the following?

Goods and also Services Payment for Goods and Services Rent, Wages, attention Land, Labor, capital AnswerEnter to increase or please answer.Answer broadened Correct Response: B. Subarea II2—MACROECONOMICS objective 003Understand the nationwide economy.

6. A major limitation that gross residential product (GDP) as a measure up of a nation"s financial performance is that it omits:

nonmarket activities. Perform investment. Government purchases. Abroad transactions. AnswerEnter to broaden or please answer.Answer increased Correct Response: A.

7. I beg your pardon of the adhering to is the best indication that the economic climate has gotten in the contraction phase of a business cycle?

a decrease in service inventories boost in the time required to make deliveries a rise in commodity prices a reduction in the size of the average workweek AnswerEnter to increase or please answer.Answer increased Correct Response: D. target 004Understand fiscal and also monetary policy.

8. Arguments that to reduce the taxes burden top top low-income households while increasing rates on high-income households can stimulate need are most often based upon which the the following financial concepts?

elasticity of demand fine-tuning marginal propensity to consume allocative performance AnswerEnter to increase or fallen answer.Answer broadened Correct Response: C.

9. The U.S. National debt can ideal be identified as the:

total amount that money the United claims owes to foreign governments. Difference in between the nation"s network exports and net imports over a given period of time. Sum of all formerly incurred annual federal deficits. Difference in between the assets and the legal responsibility of the U.S. Government. AnswerEnter to broaden or fallen answer.Answer increased Correct Response: C. Subarea III3—INTERNATIONAL economics target 005Understand worldwide trade.

10. Comparative benefit can ideal be characterized as the advantage to be acquired from compare the:

human and physical capital of two countries. Level the economic development in two countries. Opportunity expenses of production in two countries. Complete imports and exports of two countries. AnswerEnter to expand or please answer.Answer increased Correct Response: C.

11. Which of the following best describes the main function of the world Trade Organization?

to monitor economic transforms resulting native the global exchange of goods and also services to remove obstacles come the an international exchange that goods and services to aid ensure that all participants advantage from the worldwide exchange the goods and services to establish quality regulate standards because that the worldwide exchange of goods and services AnswerEnter to expand or collapse answer.Answer increased Correct Response: B. objective 006Understand international development.

12. The global Monetary fund would likely be most active in efforts to deal with which that the adhering to problems?

an global debt dilemm a disruption of trading at major world share exchanges a multinational profession war a corruption scandal including major an international banks AnswerEnter to expand or fallen answer.Answer broadened Correct Response: A.

13. A arising country would many likely adopt an income substitution strategy to:

lure foreign investment capital. Curb inflation. Promote competition in domestic markets. Construct domestic industries. AnswerEnter to increase or fallen answer.Answer broadened Correct Response: D. Subarea IV4—CONSUMER business economics AND an individual FINANCE target 007Understand principles and also practices related to consumer economics and personal finance.

14. People seeking to construct a personal investment philosophy should first:

examine the investment techniques of acquaintances. Familiarize themselves with the services available by invest firms. Recognize the amount of threat they think they deserve to handle. Calculation the likely return native various varieties of investments. AnswerEnter to increase or please answer.Answer expanded Correct Response: C.

15. An individual budgets can ideal be provided to accomplish which the the following goals?

maintaining expenditures in line with income creating a an excellent credit rating maximizing purchasing power enhancing one"s typical of life AnswerEnter to expand or please answer.Answer increased Correct Response: A. Subarea V5—INTERDISCIPLINARY PERSPECTIVES objective 008Understand the partnership between background and economics.

16. Which of the adhering to statements ideal describes a major social an effect of industrialization in nineteenth-century western Europe?

Rural locations became an ext isolated. Birth rates began to decline. Urban locations became more socially homogeneous. Men started to outlive women. AnswerEnter to broaden or collapse answer.Answer broadened Correct Response: B. objective 009Understand the relationship between geography and also economics.

17. I m sorry of the complying with statements ideal explains the prominence of the Mississippi river to U.S. Economic advance during the beforehand nineteenth century?

west exploration and settlement followed the food of major rivers. River systems served as the primary means of transportation and also commerce. Cultivation urban centers compelled stable resources of fresh water. Most agricultural production in the an ar took place on the productive soils the floodplains. AnswerEnter to broaden or fallen answer.Answer increased Correct Response: B. objective 010Understand the relationship in between political science and economics.

18. I beg your pardon of the adhering to political concepts most affected the advance and implementation of mercantilist financial policies?

company monopolies were the major threat come the government of main governments. Federal government had an responsibility to encourage the basic welfare. Nationwide power can be greatly expanded through the direction of economic activities. Markets worked finest when unimpeded by government authority. AnswerEnter to expand or fallen answer.Answer increased Correct Response: C.

19. Individuals seeking to create a cause-and-effect relationship between the increase of capitalism and also the development of representative government can finest do for this reason by concentrating on which of the following attributes of complimentary enterprise systems?

protection of personal property manufacturing for profit voluntary exchange of goods competitive industries AnswerEnter to broaden or collapse answer.Answer expanded Correct Response: A.

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objective 011Understand core democratic values, acknowledge the rights and responsibilities the citizenship in a autonomous society, and apply techniques for assessing public plan questions.

20. An business economics researcher would certainly most most likely use a pie graph to:

present shifts in the investment top priorities of a firm end the food of a quarter-century. Show the work process in an car plant. Compare the gross domestic product the two countries over a duration of three decades. Display the proportion of world employed in major sectors that a nation"s economy. AnswerEnter to increase or fallen answer.Answer increased Correct Response: D.